Islamic economy generates 8.3% of Dubai’s GDP

The contribution of the Islamic economy to Dubai’s gross domestic product (GDP) increased from 7.6 per cent in 2014 to 8.3 per cent in 2016, registering a growth rate of 14 per cent, according to Dubai Statistics Centre, a strategic partner of Dubai Islamic Economy Development Centre (DIEDC).

“These results speak volumes not only in terms of the development of the Islamic economy in Dubai, but also the success of the UAE’s sustainable development drive as part of its post-oil economy vision. We are keen to boost productive sectors and develop strategies that encourage responsible investment, entrepreneurship and innovation,” Sultan Bin Saeed Al Mansouri, UAE Minister of Economy and Chairman of DIEDC, said while chairing the second meeting of DIEDC’s Board of Directors this year.

Al Mansouri attributed the achievements ‘Dubai: Capital of Islamic Economy’ initiative to DIEDC’s partners, their commitment to implementing the Centre’s initiatives, and their contributions to the development of an institutional framework that stimulates the growth of the Islamic economy and facilitates the development of halal industry standards.

The increased contribution of the Islamic economy to the GDP has been supported by the growth of key Sharia-compliant sectors and the impact of the Islamic economy culture on conventional sectors and greater awareness of the focus of Islamic economic standards on achieving sustainable development.

DEDC’s Board of Directors reviewed a study of the Islamic economy’s contribution to Dubai’s GDP, prepared by Dubai Statistics Centre.

According to the study, within the overall contribution of Islamic Economy sectors, Islamic finance boosted its contribution from 22.2 per cent in 2014 to 24.7 per cent in 2015 to reach 26.3 per cent in 2016. The halal food sector accounted for 62.4 per cent in 2016, while modest fashion amounted to 25.7 per cent.

Data shows halal industries commanded a 94.5 per cent share of domestic trade in 2016, with halal food representing 58.7 per cent and halal pharmaceuticals and cosmetics making up the remaining 41.3 per cent.

Presenting an overview of DIEDC’s strategic updates for the first quarter of this year, Essa Kazim, Secretary General of DIEDC, said: “Most of the initiatives we have designed in collaboration with our strategic partners are well on track. The first quarter witnessed concerted efforts to establish Dubai as a global benchmark for innovation in the Islamic economy. Significant among these are the second edition of FinTech Hive and the launch of the Fiqh Forum, an international innovative platform for Islamic economy products, that represent pivotal steps in the development and globalisation of Islamic economic standards.”

As part of efforts to unify Halal standards, DIEDC is coordinating with Emirates Authority for Standardization and Metrology (ESMA) and International Halal Accreditation Forum (IHAF), an independent network of halal accreditation bodies that consolidates accreditation practices among its members to achieve multilateral recognition in facilitating halal trade among its members.